Indonesia’s Crypto Regulations Set to Be Implemented in 2024
Indonesia’s cryptocurrency market is experiencing rapid growth and development. In recent years, the market has seen significant revenue, reaching US$577.6 million in 2024. The country has become a hub for technological adoption and has climbed in the global crypto adoption index, rising from 20th to 7th place in 2023. Recognizing the increasing demand and the need to protect investors, the Indonesian authorities have implemented new regulations for the crypto space.
The crypto market in Indonesia has flourished, attracting a young and tech-savvy population. The number of crypto account holders in the country has surpassed those with stock market accounts, with over 16 million users. In July 2023, Indonesia became the first nation to launch its National Crypto Exchange, known as PT Bursa Komoditi Nusantara or the Commodity Futures Exchange. This exchange aims to provide a platform for crypto trading but does not seek to compete with global giants like Binance or Coinbase.
The current crypto regulations in Indonesia include Bappebti Regulation No. 8/2021 and Bappebti Regulation No. 13 of 2022, which provide guidelines for conducting crypto asset trading on commodity exchanges. Additionally, Law No. 4 of 2023 on the Development and Strengthening of the Financial Services Sector has also impacted crypto regulation. The regulatory authority for crypto-assets in Indonesia is the Commodity Futures Trading Regulatory Agency, or Bappebti, under the supervision of the Ministry of Trade. However, with the enactment of Law 4/2023, regulatory authority will be transferred to the Financial Services Authority, or OJK, by January 2025.
According to the Ministry of Trade Regulation, trading crypto assets is legal in Indonesia, but they cannot be used as a form of money. Instead, they are treated as commodities. Currently, 229 crypto assets have received approval from the Commodity Futures Trading Regulatory Agency to be traded in the country. To establish a crypto business in Indonesia, investors must fulfill certain requirements, such as having a paid-up capital of at least IDR 50 billion and maintaining equity of at least IDR 40 billion. They must also obtain PSE accreditation from the Ministry of Communication and IT and adhere to the prerequisites set by Bappebti.
Indonesia’s crypto regulations also emphasize compliance with risk assessment, anti-money laundering, and countering the financing of terrorism. Bitcoin dealers are required to maintain transaction history for at least five years, have a server in the country, and allow crypto trading on an Indonesian futures exchange as commodities. In March 2024, the OJK issued new regulations in collaboration with Malaysia, Singapore, and Dubai to develop a framework for crypto policy. These regulations aim to promote technological innovation in the crypto sector and will be implemented from January 2025.
In terms of legal status, crypto assets are considered legal in Indonesia but only as commodities, not as a form of payment. NFTs, mining, trading, and DeFi are all legal activities in the country. Crypto taxation laws currently subject crypto assets to value-added tax and income tax. However, with the transfer of regulatory authority to the OJK in 2025, there may be changes to the taxation laws.
Indonesia has positioned itself as a key player in the cryptocurrency and blockchain industry. The government’s support for the growth of the market, combined with a tech-savvy young population, creates a favorable environment for innovation in the crypto sector. The launch of the national crypto exchange further demonstrates Indonesia’s commitment to the development of the cryptocurrency market. With these positive developments, Indonesia is poised to become a prominent player in the crypto world.
In conclusion, Indonesia’s crypto market is experiencing significant growth and development. With the implementation of new regulations and the government’s support for the industry, the country is well-positioned to become a major player in the global crypto market. The future looks promising for those interested in exploring the opportunities that Indonesia has to offer in the crypto space.